Transcript Slide 1

Gorham PMA/DER Conference
“The Best Of Both Worlds”
Erik Paulhardt
Vice President – Aerospace and Defense
March 31, 2011
About The Timken Company
• High-performance solutions tailored for the
most demanding applications
• Global footprint:
27 countries
• 20,000 people
worldwide
• Diverse industrial
technologies
• Worldwide customers
and distribution
• 2010 Sales of
$4.1 billion
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About Timken Aerospace
• Aerospace bearings and helicopter transmission
system components
• Aftermarket services
– Part reconditioning
– Engine, transmission and component overhaul
– Replacement parts for fixed-wing aircraft and helicopters
Aerospace
Bearings
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Aerospace
Transmissions
Aerospace
Aftermarket
Our Aerospace Locations
Lebanon, NH
Ball, Cylindrical, Spherical
Keene, NH
Ball & High Level Assemblies
Manchester, CT
Timken Aerospace
Transmissions
Chengdu, China
Precision Complex Parts
New Philadelphia, OH
Tapered
Los Alamitos, CA
Repair
Mesa, AZ
Complex Parts,
Casting, Overhaul
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Wolverhampton, UK
Ball and Roller, Repair
Shiloh, NC
Precision Ball
What's Important To You?
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•
Safety
•
Reliability
•
Warranty
•
Cost
•
Responsiveness
•
Experience
What's The Current Environment?
• Two channels of choice…
1. Type Certificate Holder (TCH)
2. PMA/DER
•
PMA/DER safety & reliability
not an issue, per the FAA
• Now focus on overall value
–
–
–
–
Warranty
Responsiveness
Cost
Experience
PMA/DER penetration continues to increase
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Picking A Partner
• Do they demonstrate
these capabilities?
– Have knowledge of
aircraft system
requirements
– Leverage engineering
and development
resources
– Exhibit financial stability
– Reach a global audience/international presence
– Improve your
turnaround time
– Improve your supply chain
– Reduce your inventory
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Picking A Product
Option
Cost
Lead-Time **
New TCH part
$$$
X to XXXX…
New PMA part
$$
X to XXXX…
DER Repaired part
$
X
** - Also drives inventory
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The Case For Bearing Repair
• Rapid lead-time
• High reclamation rates
• 25-50% cost savings versus new
• Repair ~30,000+ bearings per
year
• 5,000+ approved repair processes
on more than 80 different platforms
• FAA-approved for over 50 years
• Most North American airlines and
U.S. militaries embrace the concept
For bearings, repair is a compelling option
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Summary
• PMA / DER Repair continues to gain
acceptance
– Supply base more competent
– Value proposition
• Picking the right partner is still important
– Differential between TCH / PMA / DER Repair
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